Paul Ramsay
’s
Prime Media Group
instigated talks for a new six-year affiliate deal with
Kerry Stokes
’s
Seven West Media
because of fears it would face tough competition for the No. 1 network’s content when its previous deal was due to expire in 2016.

Prime, controlled by the billionaire Mr Ramsay, began talks with Nine soon after Seven’s rivals
Nine Entertainment Co
and
Ten Network
both renegotiated affiliate deals with their respective regional partners,
Bruce Gordon
’s
WIN Corp
and
Southern Cross Media
in June and July.

It is understood that both of those shorter-term deals, which locked in higher programming fees for the metropolitan broadcasters, will expire around the same time as Prime’s previous arrangement with Seven, which could have made Prime vulnerable to fierce competition for the top-rated broadcaster’s content.

Analysts say the deal gives Prime more certainty and continuity in the programming content it is able to carry. Seven’s ratings have remained consistently high in recent weeks.

However. Prime has had to pay for the privilege. Seven is understood to have secured a larger percentage of the television advertising revenues generated by Prime as part of the affiliate deal with the regional broadcaster.

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Neither side would disclose terms, but Seven is believed to have used its growing share of the metropolitan television market to negotiate an increase in the slug of revenues that Prime pays it in return for its broadcast feed.

Speculation continues that the metropolitan networks will acquire regional broadcasters if they can persuade the Abbott government to drop the “reach rules" that currently prevent such deals happening.

Tim Worner
, chief executive of Seven West Media, said in a statement: “We are pleased to continue our partnership with Prime. It is a relationship that delivers great results for both companies and on a personal level it is a very special one in that we very much enjoy working with Paul Ramsay,
Ian Audsley
and their team.

“We are looking forward to building on our leadership in broadcast television and working even more closely with Prime in delivering our content to all Australians and working with them in enhancing the audience and revenue delivery for both companies. Broadcast television and the creation and development of Australian content will play a key role in the future of the company."

Mr Audsley, chief executive of Prime Media said: “With Australia’s best television programs in its schedule, we are confident that Tim Worner and his team will continue to deliver quality programming. Prime’s broadcast partnership with Seven drives strong audiences in regional and rural Australia and provides tremendous opportunity for Prime’s advertisers."